Product sales were $13.4 million compared to $12.6 million in the first quarter of 2007 and $22.0 million in the second quarter of 2006, which included $10.7 million related to the sales of the EverQ joint venture, whose results were consolidated with Evergreen Solar until the ownership change in December 2006.
Total worldwide sales of String Ribbon product were $44.7 million in the second quarter, which includes $31.3 million of sales generated by EverQ.
EverQ’s new 60 MW facility had its first panel shipments late in the second quarter and is expected to reach full capacity by the end of 2007, as scheduled. Total worldwide sales of String Ribbon product were $40.2 million in the first quarter of 2007, including $27.6 million generated by EverQ.
Gross margin was $3.4 million, or 22.3%, including fees of $2.0 million related to the marketing and sale of EverQ panels by Evergreen Solar and royalty payments for Evergreen Solar’s technology contribution to EverQ. In the first quarter of 2007, gross margin was $2.8 million or 20.1%, including EverQ fees of $1.5 million.
In the second quarter of 2006, gross margin was $927,000, or 4.2%, which included EverQ factory start up costs. Net loss was $7.5 million, or $0.09 per share, for the second quarter of 2007, including $1.6 million for Evergreen Solar’s portion of EverQ’s expected quarterly loss caused by start up costs of the second factory, most of which were incurred during the second quarter.
In the first quarter of 2007, net loss was $6.2 million, or $0.09 per share, which included Evergreen Solar’s share of EverQ’s quarterly break-even results. In the second quarter of 2006, net loss was $7.5 million, or $0.11 per share.
“We are pleased with the progress we are making on our new 75 MW facility in Massachusetts. We expect to break ground in September, ship our first panels in the third quarter of 2008 and reach capacity by late 2008 or early 2009,” said Richard M. Feldt, Chairman, President and Chief Executive Officer of Evergreen Solar. “This factory will use our revolutionary Quad furnace technology with its state of the art automated ribbon cutting technology. This innovative wafer production process provides substantial opportunity to further increase yield, cell efficiency and labor productivity as well as to reduce our already industry-leading silicon consumption.”
“EverQ opened its second factory in mid June and began shipping panels late in the quarter. We expect the second facility to achieve its maximum annual capacity of 60 MW by the end of 2007, bringing EverQ’s total capacity to approximately 100 MW,” said Feldt.
Product revenue is expected to be in the range of $13.5 million to $14.5 million and joint venture fees are expected to be in the range of $3.0 million to $3.25 million. Gross margin is expected to be in the range of 22.0% to 24.0%.
Operating expenses are expected to be in the range of $10.5 million to $11.0 million, including research and development costs of $5.1 million to $5.3 million and factory start-up costs of approximately $250,000.
Operating loss is expected to be in the range of $6.75 million to $7.0 million and net loss is expected to be in the range of $5.75 million to $6.2 million, or $0.06 per share, including approximately $750,000 to $1 million of non-operating income and essentially breakeven operations in the quarter from EverQ.
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